The MIT License:
Copyright (c)
Permission is hereby granted, free of
charge, to any person obtaining a copy
of this software and associated
documentation files (the "Software"),
to deal in the Software without
restriction, including without
limitation the rights to use, copy,
modify, merge, publish, distribute,
sublicense, and/or sell copies of the
Software, and to permit persons to
whom the Software is furnished to do
so, subject to the following
conditions:
The above copyright notice and this
permission notice shall be included in
all copies or substantial portions of
the Software.
THE SOFTWARE IS PROVIDED "AS IS",
WITHOUT WARRANTY OF ANY KIND, EXPRESS
OR IMPLIED, INCLUDING BUT NOT LIMITED
TO THE WARRANTIES OF MERCHANTABILITY,
FITNESS FOR A PARTICULAR PURPOSE AND
NONINFRINGEMENT. IN NO EVENT SHALL THE
AUTHORS OR COPYRIGHT HOLDERS BE LIABLE
FOR ANY CLAIM, DAMAGES OR OTHER
LIABILITY, WHETHER IN AN ACTION OF
CONTRACT, TORT OR OTHERWISE, ARISING
FROM, OUT OF OR IN CONNECTION WITH THE
SOFTWARE OR THE USE OR OTHER DEALINGS
IN THE SOFTWARE.
The MIT license talks about distributing software, not distributing sourcecode. You will need to add a separate text file with this license text inside it. Just call it "LICENSE" for Linux or "License.txt" for Windows, as long as you include it.
Basically, it's one of the simplest licenses since it tells you to do with the software whatever you want but if it destroys your computer, shoots your dog, divorces your wife, makes your oldest daughter pregnant or anything worse then tough! There are no warranties so use at your own risk. Without it, you'd be liable for possible damage.